Table 1 Gravity equation of trade:... | Emerald Publishing

Table 1

Gravity equation of trade: working-age population and shares of retirees

	OLS			PPML
	(1)	(2)	(3)	(4)	(5)	(6)
	$\ln (X_{i j t})$	$\ln (X_{i j t})$	$\ln (X_{i j t})$	$X_{i j t}$	$X_{i j t}$	$X_{i j t}$
$W A P_{e x}$ – $W A P_{i m}$	1.04***		1.27***	0.75***		0.70***
$W A P_{e x}$ – $W A P_{i m}$	(0.07)		(0.07)	(0.14)		(0.15)
$O l d A g e_{e x}$ – $O l d A g e_{i m}$		3.56***	4.04***		−0.27	−0.21
$O l d A g e_{e x}$ – $O l d A g e_{i m}$		(0.17)	(0.17)		(0.19)	(0.25)
$Z_{i j t}$	X	X	X	X	X	X
$P a i r F E s$	X	X	X	X	X	X
$Y e a r F E s$	X	X	X	X	X	X
R²	0.84	0.84	0.84
psuedo-R²				0.97	0.97	0.97
N	650,339	650,339	650,339	1,086,134	1,086,134	1,086,134

Note(s): $Z_{i j t}$ contains controls for GDP and GDP per capita as well as for regional trade agreements between country-pairs